₹4,300 becomes ₹4,644 in 2 years at simple interest. Find the principle amount that will become ₹10,104 in 5 years at the same rate of interest.
Interest = 4644 - 4300 = 344
p = 4300
T = 2 years
Simple interest = $$\frac{prt}{100}$$
344 = $$\frac{4300 \times r \times 2}{100}$$
r = 4%
Let the principle amount be x.
So, interest = 10104 - x
T = 5 years
r = 4%
Simple interest = $$\frac{prt}{100}$$
10104 - x = $$\frac{x \times 4 \times 5}{100}$$
10104 $$\times 5$$ - 5x = x
6x = 50520
x = 8420
$$\therefore$$ The principle amount is Rs. 8420.
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